Analysis Of The Tax Regulation On Electronic Commerce

The development of Electronic Commerce in the globe changes the existing economic structure rapidly. As a result of scientific and technological progress, Electronic Commerce goes far beyond itself as a new form of trade. It makes a comprehensive and deep-rooted influence to the whole society. Because of its virtual nature such as the invisible character different from the traditional mode of trade. It brings unprecedented difficulties and challenges to the existing law system including tax law. Therefore, the development of taxation law and policy in E-commerce environment has become such an important issue that each country must face. This paper attempts to give a concrete analysis on the influence of electronic commerce on the traditional legal system, based on the concepts and classifications of it. Furthermore, we will discuss the jurisprudence and the basic law principles of tax regulation on E-commerce. In the end, we will come to the argument of how to build up the tax regulation system.The first section of this paper introduces the concepts of E-commerce defined by foreign and domestic scholars. Next I will highlight the standards in the classification based on different E-commerce transaction models. It can be divided into on-line E-commerce and off-line E-commerce, which is the basic point for this article to continue many arguments. The second section discusses the impacts of E-commerce on the current tax law, including the impacts on tax principles, tax factors, taxes, tax jurisdiction, tax regulation and so on. These challenges can explain why we need to study on the tax regulation on it. The third section talks about the typical international attitudes towards the taxation problems of E-commerce, choosing developed countries represented by the United States, the European Union and India on behalf of developing countries as a comparison. The analysis of their different solutions to E-commerce taxation problems, also for China who is facing the same problems, is a reference and consultancy. The fourth section focuses on the construction of our own E-commerce tax legal system. Especially on the jurisprudence and the principles of China's E-commerce taxation, how to improve the tax laws, how to build up the tax regulation system of E-commerce are also two big problems for us. I consider these three issues as three key points. In the end, the paper raises some viewpoints to some up-rising questions initiated by Virtual Currency. This article at last boldly calls for a reformation of our tax-sharing system in order to adapt to the development of E-commerce.